Profit at the European arm of fund management giant Vanguard dropped by a third last year, as the business incurred higher expenses and personnel costs after adding almost 200 people to its books.

Vanguard Asset Services — which incorporates the US asset manager's businesses in the UK, Ireland, France, the Netherlands, Germany and Switzerland — generated a £17.5m profit in 2021, down 33% from £26.1m the previous year, according to accounts filed with Companies House.